Market Update 8-13-2013

Retail sales numbers came in today and were up which helped markets to rally upwards.  This and the upward swing on the value of the US Dollar probably contributed to gold going downwards today.  When people see more opportunity in the market they are less likely to run to safe havens like gold. 

Because of the slow economic recovery I still like companies like Dollar Tree (DLTR), Dollar General (DG), Walmart (WMT) and Target (TGT).  The ability of people to buy goods is still hampered by the lack of available lending, thus people are still more inclined to look for bargains and spend less. 

How Do I Start Trading?

By Photokanok, published on 26 July 2013
Stock Photo - image ID: 100186685

The first thing to do to start trading is to set up an account with one of the online brokerage companies.  The most well-known are TD Ameritrade, E-Trade, Scott Trade and Charles Schwab.  I use Trade King because the commissions are low ($4.95) and you can call a broker to place a trade for you. The on-call brokers work magic, they can get your trade in better than your price sometimes. If you choose them let me know there's a referral program where we both can get $50.

For charts and analysis nothing beats Think or Swim. I have a TD Ameritrade account just for the Think or Swim paper money and for their Investools free classes. I don't trade on them however because their commission is $10, just for practice and info.

This will get you up and running.  The key however, is to practice before you trade.  Be sure to make use of the paper money trading tools.  This helps you to practice strategies and get used to the stress of pulling the trigger.  Your emotions will get the better of you if you let them so it's good to plan your entrance and exit strategies and to be disciplined.  

 

Are 401k's a Sham?

Recently a friend of mine asked if 401k's are a sham.  My response was that they are only one type of investment vehicle and like any other they come with risks. The main reason to have a 401k is it's free money from your employer. The other reason is to reduce your taxes because the money is taken out before taxes. The best way to use a 401k is to let the money pile up to around 20k-50k and then roll it over into a good investment property (one in a great location) through a self-directed IRA.

Here's the video that prompted his question: